Paye showing as asset

[ian_roberts]

There are several threads on here if you search for “payroll journal”, here’s a couple of times I’ve explained it in the past:

Payroll related accounts

The usual way to handle payroll in QuickFile is with a journal on the pay date that does DR “gross wages” (P&L) for the gross pay before deductions (tax, employee NI, etc) DR “employers NI” (P&L) for the employer’s national insurance CR “PAYE” (balance sheet) for the amount that will be paid to HMRC (tax, employee & employer NI, etc) CR “net wages” (balance sheet) for the net amount due to the employees The actual payment out from the bank to the employees and to HMRC is then purely a balance…

Journals and Payroll

The “red column” is right (assuming £832 is “gross wages” 7000 and £18.03 is “employer’s NI” 7006), but for the green column what you need to do is put the total of everything you owe to HMRC - employer’s NI plus income tax plus employee’s NI (I presume that’s what “NI” means here) - all against the “PAYE” nominal code 2210. Gross pay £832.00 debit “gross wages” (7000) or “director’s salaries” (7001) depending whether it’s employees or directors. Employer’s NI £18.03 debit “employer’s NI” (700…